Bitcoin Market Share Climbs to 61% as Altcoin Rally Loses Steam

Bitcoin ‘s Market Dominance Reaches New Heights

Despite declining liquidity in the cryptocurrency market, Bitcoin ‘s dominance has surged to a new cycle high of 61%. Analysts at Matrixport attribute this to the Federal Reserve’s increasingly hawkish stance and stronger-than-expected U.S. job data.

A resilient labor market often signals a robust economy, leading to higher interest rate expectations or delays in planned rate cuts. As borrowing costs rise and liquidity contracts, investors shift away from altcoins, favoring Bitcoin instead. Even amid price declines, Bitcoin has solidified its position as the preferred asset during uncertain macroeconomic conditions.

Altcoin Rally Fizzles as Bitcoin Market Share Climbs

Matrixport data shows Bitcoin’s market dominance stood at 60.3% on November 5, dropping to 53.9% by December 9 as altcoins gained post-election traction. However, this trend quickly reversed as investors adjusted to new economic conditions, pushing Bitcoin’s market share higher once again.

Crypto Market Loses $900 Billion

The total cryptocurrency market has suffered a sharp contraction. In December, when Bitcoin controlled about 53% of the market, total valuation peaked at $3.8 trillion. However, by March, market capitalization had fallen by $900 billion to approximately $2.9 trillion, highlighting declining liquidity, especially among altcoins.

Bitcoin has remained more resilient compared to its counterparts. Over the past month, Bitcoin dropped 24% from its January peak of $109,000, Ethereum fell to $1,895, and Solana plummeted by 39%.

Fed Policy and Bitcoin’s Future

Federal Reserve policy continues to play a crucial role in Bitcoin’s price movement. Matrixport analysts warn that ongoing liquidity concerns will limit Bitcoin’s potential for rapid price gains. While Bitcoin has outperformed other cryptocurrencies, sustained upward momentum will require patience, as Fed policies could counteract any positive liquidity-driven effects.

With the market in a prolonged adjustment phase, it is expected to maintain its dominance, even as overall cryptocurrency liquidity remains constrained. The sector’s ability to recover will depend on investor sentiment and shifting interest rate expectations.

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